Local Government

Baroness Thornhill Excerpts

Tuesday 27th November 2018 Lords Chamber

[Lord Bourne of Aberystwyth]

My noble friend always, understandably, makes a powerful case for local authorities. He will be aware that in the Budget we added money for adult and children’s social care. As I said, the fair funding formula is not about adding to the pot—that will, I hope, be done in the spending review next year.

[Baroness Thornhill (LD)]

My Lords, we are all aware that many councils, in particular county councils, are facing serious financial problems. Within the UK, we now have devolved Administrations, combined authorities, metro mayors and city deals, all with varying tax-raising powers offering different degrees of fiscal autonomy. Does the Minister agree that the two-tier system is now the Cinderella of local government, and is it not time for the Government seriously to consider offering all councils similar powers before it is too late?

[Lord Bourne of Aberystwyth]

Where I agree with the noble Baroness is that the system is already quite complex. Although she referred to the devolved Administrations, these particular issues will not affect Wales or Scotland—not directly anyway—nor, indeed, Northern Ireland; they are just about England. She has a point about the need for simplicity, and that runs through the review. It is aiming to be simple and transparent. That is why we are taking our time on it and why we are doing it in this way. As I said, noble Lords and others will see the results of the first stage of that consultation when we publish it next month.

Affordable Housing

Baroness Thornhill Excerpts

Thursday 25th October 2018 Lords Chamber

[Baroness Thornhill (LD)]

I declare my interest as one of the many vice-presidents of the Local Government Association in the House. I am privileged to be able to contribute to this debate, which has been true to the standard of your Lordships’ House—well informed, passionate and extremely wide ranging. I thank my noble friend Lord Shipley for affording us this opportunity to discuss what is, without doubt, an important issue. My contribution will be a gallop around the course.

Several noble colleagues, particularly the noble Lords, Lord Best and Lord Whitty, succinctly summarised the current housing crisis and offered some solutions. So much expert opinion, government policy and our own contributions today show that, to a greater or lesser extent, the case is proven: we need more affordable homes. I was grateful to my noble friends Lady Brinton and Lady Thomas for particularly highlighting the need for more supported homes and lifetime homes. We are indeed building far fewer such homes and of those we are building, an even smaller percentage are social homes for rent. It is important to repeat that of the 42,000 affordable homes built last year, only 5,380 were for social rent.

Let us be in no doubt about the difference; we are all guilty of using the terms interchangeably, but the real need is social rent, currently described as up to 60% of market rent, although perhaps, as has been pointed out, that is not necessarily the best definition. The noble Lord, Lord McKenzie, was particularly exercised on that point.

I am personally in full support of the Government’s drive for diversity among housing providers and in tenure. As has been evidenced by several speakers, including the noble Lord, Lord Kerslake, the current policy emphasis seems to be on the delivery of numbers and home ownership. While this is indeed the tenure of choice for many, the harsh reality is such that we cannot build ourselves quickly out of this crisis and that there will always be a need for low-cost rented homes. I also believe in the diversity of people within communities and recognise that there are millions of low-waged working people for whom a home of their own is, and always will be, the council house or the housing association’s socially rented property. A sustainable town means a town for all. Our country needs these workers; indeed, I would argue that they are the lifeblood that keeps our towns, cities and villages moving and functioning.

The Government need to prioritise the delivery of homes for social rent as it is the only tenure that will effectively reduce homelessness and take pressure off the housing benefit system, as amplified by the noble Lord, Lord Rooker. While there is good news in the White Paper, the revised NPPF and the Letwin review, the current Green Paper seems to reinforce the idea that the Government see social rent as a springboard to ownership or other tenures. Can the Minister clarify the Government’s position on the need for social housing and its importance in the menu of fixed tenure?

Many of the Government’s good proposals are medium to long term but in the short term, as the noble Baroness, Lady Donaghy, said, will the Government consider allowing councils the power to restrict right to buy or have a moratorium on new-build social homes while a solution is sought to ensure one-for-one replacement? The LGA’s figures show that almost £3.5 billion in right-to-buy discounts have been handed out to council tenants over the last six years, at an average cost of £60,000 per dwelling last year. The loss of this social housing risks pushing more families into the private sector, again driving up the housing benefit bill. As we know, eviction from the private rented sector is now the single biggest cause of homelessness.

In the short term, the rise in planning fees by 20% was also welcomed. But given that the industry is still being subsidised to the tune of £125 million a year—I checked that figure but it is correct—when will we know the outcome of the recent consultation on councils’ ability to raise planning fees even further?

The noble Lord, Lord Rooker, passionately pointed out that conversions from office to residential under permitted development rights have been problematic. While it has obviously increased the number of homes, it has meant depriving councils of an opportunity to leverage any contributions from developers. The LGA has shown that this has led to a loss of 7,500 potential affordable homes over two years—not to mention the lack of ability to enforce housing standards, say on room size and quality, let alone environmental standards, as outlined by my noble friend Lady Walmsley. Old office blocks do not necessarily make good homes, especially if there is nowhere for the bins, bikes and buggies to go. Will the Government reconsider removing these permitted development rights to allow councils to decide where and when it might be appropriate to use these powers to create sustainable neighbourhoods and, perhaps more importantly, to secure more homes for social rent?

The lifting of the borrowing cap was mentioned by several, including the noble Baroness, Lady Warwick, and certainly welcomed by most. Will the Minister outline the timeframe for this so that even more councils can get cracking and build? Councils want to be part of the solution but I draw the House’s attention to the massive variations that exist between places in the cost of building social housing. In my own authority we have spent a great deal of time and expertise, which the Minister might be pleased to know we have shared with his civil servants, on working out the true cost of subsidy for building a social home in Watford. It is at least £100,000 per unit, and that is where the land has been provided at no cost and based on Homes England’s 40-year appraisal model. By contrast, the same model built to the affordable rent standard would break even, but it is social homes that we need. Do the Government recognise that councils will need consistent long-term funding for a new generation of public homes at social rather than affordable rent levels?

It is certainly the perception of residents that under the current system landowners and developers have too much control over what is built and where. Does the Minister agree that fundamentally what is needed is to get land into development at lower cost? The high price of land is the main driver in the loss of developer contributions when the unpopular viability test is applied.

Speakers have acknowledged that in the revised NPPF this viability loophole has, we hope, been closed. It is now imperative that councils use their powers to set strict and ambitious targets and achieve them. This will become more pertinent once the housing delivery test starts to apply. The Government will no doubt be monitoring closely how this plays out.

To make progress in the longer term we need a recognition that this speculative development model with its low-value land capture is not working for communities and ordinary people. As has already been said, the Centre for Progressive Capitalism has said that 75% of uplift in land value goes to landowners’ profit and only 25% to community benefit. Interestingly, in the rest of the EU the reverse is true. Perhaps this is why we have turned a nation of nimbies into BANANAs—build absolutely nothing anywhere near anybody.

Most recently, government policy, as expressed in the NPPF, sets a default level of 10% of housing on all development sites to be designated affordable. Noble Lords should note that the word is “affordable” not “social”. Did the Government give any thought to allowing councils to decide what is right for their area rather than the presumption of 10%, which is inflexible and limits local authorities’ bargaining power about what is most desirable for their area?

Finally, the noble Lords, Lord Horam and Lord Suri, eloquently expounded that the cost of land drives the current speculative development model which an increasing number of experts believe to be broken. There must be better ways of taxing land which are fairer for all parties. I know that that thinking is above my pay grade, but are our Government looking into this for serious long-term change or are they happy with the status quo? Rather controversially, is it perhaps not now time to question the whole premise of social housing being provided through the developer 106 contribution model, which is arguably ineffective, time-consuming, costly and loathed by all parties, and look to fund a much-needed renaissance of council house building by other means? It would be very popular and much needed.

Private Rented Sector Licensing Schemes

Baroness Thornhill Excerpts

Tuesday 16th October 2018 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, the scheme operated in the London Borough of Newham is very effective, as many of them are. We have studied it closely and give support to it. As I said, we are certainly not against selective licensing—we very much approve of it being used. It can be used under the 20% threshold by local authorities just proceeding with it. Where there is the 20% threshold, we will scrutinise the scheme to ensure that there has been a proper process and consultation. From memory, I think that Newham is below the 20% threshold, but it is a very good scheme.

[Baroness Thornhill (LD)]

My Lords, there is now clear evidence that licensing works. It gives councils better data on where these landlords and tenants are, more funding to do the job and additional powers. What we cannot accept is that the Government have chosen to take away those powers. Why deprive councils of the tools to do the job, given that, as has been said, the problem is growing and the sector is growing?

[Lord Bourne of Aberystwyth]

My Lords, first of all, there are two systems: the mandatory licensing system, which we extended on 1 October, and the selective system. Here, I want to correct myself: Newham is above the 20% threshold, and the scheme works very well. We are seeking to work with boroughs. A review on selective licensing is being conducted; its first meeting has just happened and it will report by May next year. We hope to learn lessons from that review and take it forward according to those lessons. However, I do not want to pre-empt that—the work has just started.

Housing: Local Plans

Baroness Thornhill Excerpts

Thursday 13th September 2018 Lords Chamber

Asked by

[Baroness Thornhill]

To ask Her Majesty’s Government, further to the announcement of a Housing Delivery Test in the revised National Planning Policy Framework published 24 July, what measures they will take to prevent developments which do not comply with local plans agreed at a local government level.

[Baroness Thornhill (LD)]

I beg leave to ask the Question standing in my name on the Order Paper and I declare an interest as a vice-president of the Local Government Association.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, the revised National Planning Policy Framework gives greater certainty to areas that are delivering developments in line with the local plan. However, where there is underdelivery, the housing delivery test will hold local authorities to account for their role in delivering the homes we need by making more land available through a buffer on land supply, or by invoking a presumption in favour of sustainable development. Additionally, locally produced action plans will enable local authorities to understand what is preventing plan delivery in their areas.

[Baroness Thornhill]

I thank the noble Lord for that interesting Answer. While the new NPPF has much to commend it, does he agree that this housing delivery test is set to become both controversial and challenging? What powers do the Government think local government has now, and what powers will it have in the future to hold the housebuilders to account for prompt completions following planning permission, as this housing delivery test demands?

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Baroness for her comments and her welcome to the National Planning Policy Framework generally. It certainly is challenging; the evidence is that local authorities are stepping up to the plate. Where they do not, there is a sanction involving a buffer on land supply. But it is in response to what we regard as most important: providing housing for the nation. Last year—the last year for which records are available—we hit the best year for 30 years. Let me correct myself: only one year in the previous 30 was better. But there is still a challenge and that is why we are doing this.

Homelessness

Baroness Thornhill Excerpts

Wednesday 12th September 2018 Grand Committee

[Baroness Thornhill (LD)]

My Lords, poignant points have already been made. Homelessness is indeed a personal disaster for those whom it affects, but it is also a national tragedy and is one of the most visible signs of the nation’s housing crisis. I give credit to the Government for recent initiatives such as the rough sleeping strategy and the Homelessness Reduction Act but want to use my brief minutes to outline areas where I believe that, despite their genuine intentions, there is still work to be done.

From my time as mayor of a local authority and patron of a homeless charity—New Hope, Watford—it is apparent to me that two main factors exacerbate the problem of homelessness and remain the biggest barriers to the Government meeting their laudable aim to end rough sleeping by 2027. They are the impact of the frozen local housing allowance and associated welfare issues and the lack of appropriate social housing—in particular, supported housing. Were those two variables to change positively, it would result in fewer people reaching crisis point and becoming homeless.

Although the picture is different in different parts of the country, in high-cost areas, the local housing allowance cap means that even full housing benefit does not cover the rent—in some cases, nowhere near—and we know that eviction from the private rented sector is still the main cause of families presenting as homeless. It also makes private renting unaffordable ever for many low-income households.

The combination of this and the massive reduction in social housing means that councils cannot move these families on, and the average stay in temporary accommodation is increasing. This means that other families have to go into hostels or B&B accommodation, or even move out of area, at additional cost to the council and emotional and social cost for the families.

It is not just homes at social rent levels that are needed. That would indeed help families in temporary accommodation, but for rough sleepers, the right kind of accommodation with specialist support is much needed but in short supply. At New Hope, Watford, two-thirds of our service users have mental health issues. My experience has shown that there is simply not enough support for people with serious mental health and addiction issues.

Councils and the voluntary sector working together know what works and can get it right. We received government funding in 2016 to create an intervention team working with those in greatest need to address the issues raised by my noble friend Lady Smith. It is in the nature of how the Government fund such schemes that our number one problem is that the funding runs out in 2019 and there is the real prospect that the team will have to be disbanded. Bids are already going in to every available source to continue this proven work. Does it have to be this way?

Finally, the Homelessness Reduction Act has on the whole been a good thing. It has forced councils to put a stronger focus on prevention—although, to be fair, the best councils were already doing that. Councils have embraced this new role: we all want to work together to reduce homelessness. But it costs, largely in the number of staff needed to do the up-front intervention work. My authority received £35,000 from the Government for this work, but that does not even cover the costs, including on-costs, of one additional member of staff, and at the moment we employ four.

The LGA is asking that in the Government’s funding review, they should commit to address any shortfalls. This will ensure that the legislation is successful across all areas of the country. I sincerely hope that this happens.

Affordable Housing: Social Homes for Rent

Baroness Thornhill Excerpts

Tuesday 3rd July 2018 Lords Chamber

Asked by

[Baroness Thornhill]

To ask Her Majesty's Government how many social homes for rent they estimate will be built under the affordable housing programme.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, since 2010, we have delivered over 378,000 affordable homes, including 129,000 at social rent. Last week, we announced a £1.67 billion government investment deal that will deliver an additional 23,000 affordable homes outside of London, including at least 12,500 at social rent in areas where they are needed the most. This is part of the Government’s £9 billion investment in affordable homes. The total number of homes delivered will depend on the bids received.

[Baroness Thornhill (LD)]

I thank the Minister for his Answer, and I am genuinely pleased to see any increase in social housing. However, let us take that figure of 12,500, which my own authority will be bidding for—that actually equates to 25 homes a year. I am sure the Minister is aware that delivery is actually down. The numbers sound grand until you realise that 40,000 affordable homes were delivered in 2010 but the figure was down to 5,500 in 2016-17. Last year, 12,000 homes were lost to right to buy alone. Can the Minister understand why these proposals and the figures that he outlined are loose change in response to the evidenced need? Will he reassure us that the forthcoming Green Paper will be both bold and radical in its attempt to solve what I believe is a real social crisis?

[Lord Bourne of Aberystwyth]

My Lords, I am glad that the noble Baroness welcomes the progress made. In 2016-17, the year to which she referred, we saw 217,350 new homes delivered—the highest number in all but one of the previous 30 years.

Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill

Baroness Thornhill Excerpts

Committee: 1st sitting (Hansard): House of Lords
Tuesday 19th June 2018 Lords Chamber

[Lord Kennedy of Southwark]

My Lords, the previous couple of debates have highlighted why this amendment is needed. We have talked about the effects of the Bill—although it is a small Bill—particularly with regard to council tax payers and empty properties. I think it is worth having in the Bill a clause that enables the Government to review—my amendment suggests within 24 months—what has happened in respect of Clause 2 and the impacts of the decision. My amendment also requires that after the review a report is laid before Parliament.

The noble Baronesses, Lady Pinnock and Lady Thornhill, have tabled a very similar amendment. Subsection (2) of their new proposed new clause suggests that,

“the Minister may also consider the impact of any penalties imposed on persons for failing to register their dwelling as empty”.

I am happy to support that as well. Considering the debates we have had on the previous groups, having a mechanism whereby the Government can look at the effects of the Bill, small though it is, is a good thing to do. I beg to move.

[Baroness Thornhill (LD)]

My Lords, I declare my interest as a vice-president of the Local Government Association. I fully support the words of the noble Lord, Lord Kennedy. I thank the Minister for the very detailed and informative letter he sent all of us after Second Reading; in particular, his response to my comments on fiscal incentives and deterrents with regard to empty homes. I really appreciated that and took on board what he said. Perhaps he will indulge me by allowing me to hang on to the one measure that he did not elaborate on—that is, the matter of penalties.

It is probably little known that councils actually have the ability to levy a civic penalty on an owner for not informing councils that their home is empty. It is not surprising that it is little known; the maximum penalty for doing so is actually £70, so it is no surprise that it is rarely, if ever, used, and that the general public are oblivious to it. In fact, I suspect that if we talked to the general public we would find they believed that by informing the council that their home was empty they would actually pay less or no council tax, so that shows that we have a long way to go. As the average council tax, the band D monthly payment, is now around £165 a month, a penalty of £70 is nothing—it is neither a penalty nor a deterrent. So this is a small matter but I feel that the two should have been taken together. If we are going to, justifiably and rightly, hike up council tax premiums, the penalty that goes with not informing the council should send the same level of message—£70 is, frankly, derisory.

I see both these measures—the penalty and the increased premiums—as really important in motivating councils to move this up their agenda. I say this with a degree of experience in local government, particularly in district councils where this is not a priority, largely because of costs. At Second Reading we heard a lot about powers not being used because of costs, but I think that together these two things would encourage councils to publicise the need to not leave homes empty, and to make it a publicly unacceptable issue so that people would be enraged by it and want us to do something about it. If there were to be a review, would we also review penalties in this regard, as I feel that it would be a missed opportunity if we did not? I beg to move.

[Lord Bourne of Aberystwyth]

I am very grateful to the noble Lord, Lord Kennedy, and the noble Baroness, Lady Thornhill, for their contributions on this group of amendments that relate to how we seek to address the penalty point just covered by the noble Baroness and the issue of the review, which was raised by the noble Lord.

The amendments would require the Government to review the impact of the increase in the maximum permitted level of the empty homes premium. I pause briefly to say that I think I am going to organise a list of all the things that the noble Lord, Lord Kennedy, has asked us to do reviews on. I know that he very often says that we have so many things out for review and then we have a critique of that, but we have had a couple of issues today at least where he has asked for reviews. I am only teasing.

Housing: Private Rented Sector

Baroness Thornhill Excerpts

Thursday 14th June 2018 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, first, the noble Lord may not appreciate that the latest figures indicate an increase, although a modest one, in the rate of owner-occupation. On Generation Rent and the issue of longer tenancies, he is right that most of the private rented sector is not new builds, although we have 97,000 in the pipeline for the Build to Rent sector. However, in relation to longer tenancies, the noble Lord is absolutely right that the previous Secretary of State was in favour of this, as is the present one—very much so. We are pursuing that with the British Property Federation, which is the main player here and is committed to offering three-year tenancies and longer.

[Baroness Thornhill (LD)]

My Lords, the National Planning Policy Framework is due to report shortly. Will the Minister assure us that, in order to incentivise Build to Rent—I have some hope that this might provide additionality—there will not be further policy shifts which will in effect let developers off the hook when it comes to their financial contributions to councils with regard to the community infrastructure levy and Section 106 agreements? They provide important amenities and, in particular, contributions to social and affordable housing. Secondly, can he assure us that there will not be a trade-off in the quality of build against speed and the quantity of delivery?

[Lord Bourne of Aberystwyth]

My Lords, quality of build is important and is included in the NPPF; we have consulted on that and are now considering the responses, as the noble Baroness will know. There is also a commitment in the NPPF, as she will know, to people who want to rent their homes, and a particular provision on affordability.

Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill

Baroness Thornhill Excerpts

2nd reading (Hansard): House of Lords
Monday 4th June 2018 Lords Chamber

[Baroness Thornhill (LD)]

My Lords, I declare an interest as a vice-president of the LGA. Given that Clause 2 is to increase councils’ ability to charge more council tax on empty homes in the light of the housing crisis, I could simply say, “What’s not to like?”, and sit down. I totally appreciate and acknowledge that the Government have made some headway in this area, so I rise instead to urge the Government to be bolder in tackling the problem of empty homes. Does the Minister really believe that this Bill will make more than a marginal difference, since councils can already increase council tax on empty homes by 50%—and most do, including my own?

I appreciate the Minister’s intention to give councils more autonomy in this matter, which is particularly welcome. Although this is a national issue—the figures leave us in no doubt of that—we are not looking at the problem enough, which is different in different parts of the country. Largely, in the north of England, whole communities are blighted by row upon row of empty, boarded-up terraced housing, with a few residents living in between, giving rise to the label of “rotten teeth roads”. These have become areas where people no longer want to live, largely due to the loss of jobs nearby. The sad thing is that they have become a symbol of the decline and dereliction of once-thriving communities.

In rural areas, as has been mentioned, the large number of second homes is a cause for concern, though perhaps different in nature and with differing consequences. The problem in prosperous parts of the country, in particular the capital and the south-east, is that of buy-to-leave, of which we are all aware. Then, of course, there are the sporadic properties present in every council area and ward. These add up to a significant number, but they are small in number, particularly for most district councils, which I suspect is why they are not always a top priority. It is inconceivable that a small rise in council tax will affect the oligarchs and multimillionaire investors, so please let us not claim that it will make a difference to the buy-to-leave empty homes. The problems of rotten teeth roads will not be solved either, as it requires considerable political will from councils and successive national Governments to reverse this serious decline in some parts of our country.

In my view, the rhetoric surrounding the Bill will not live up to the reality, although we do clearly support it. The onus for bringing empty homes back into use lies with councils, and some are undoubtedly doing an excellent job, particularly in the north, where the problem is far more acute. From my experience of running a council, I know that while it is easy to say that we must tackle the problems of empty homes, in practice doing so is massively resource-intensive and time-consuming, with no certainty that time, effort and money will lead to a positive outcome. All too often in the two-year battle with the home owner, councils have gone to court and come back disappointed. I will never forget a case we had, where the lady in question, who lived in a rather lovely farmhouse in Surrey, used to come back to her property in Watford and sleep there with no heating, electricity or water for a couple of nights a week a year. She made sure she knocked on her neighbours’ doors so they all knew that she was still coming back. We lost that one. I would like the Government to commit to exploring ways to secure better outcomes and look at why the empty dwelling management orders, or EDMOs—the intention of the Labour Government was correct: they were meant to be easier to administer and better than compulsory purchase orders—are not working.

The Bill proposes a fiscal measure regarding council tax, so what else could have been done fiscally? I believe the premium needs to be steeper to have any significant impact at all, increasing with the length of time that the property has been vacant. I hope it is not too late to consider that. Also, lowering the rate of VAT on refurbishment and renovations would incentivise owners to get on with bringing their property back into use. Would the Government consider ending the loophole in the compulsory purchase order process, where the owners of empty properties get a bonus of up to £75,000 if councils exercise compulsory purchase orders?

Would it be possible to rationalise the law to give councils simple, consistent rules that provide an unqualified right to recover taxpayers’ money spent on enforcement and the up-front costs associated with things such as EDMOs? Current rules for cost recovery vary from one piece of legislation to another. Surely the community interest in the property should take precedence over all others, so that any debt to the local authority arising from its intervention would have the first call on any equity should the home be sold. With an EDMO, local authorities turn an unproductive asset into one that earns money for the owners, yet council tax payers are unable to recover the up-front costs.

I also have doubts about whether the data on empty homes is actually correct. As has been mentioned, since the introduction of the premium rate in 2013, there is absolutely no incentive for a home owner to declare that a property is empty. Why would you if it meant you had to pay more council tax? Your Lordships may be surprised to hear that the current fine for not declaring your property empty is a hefty £75. Surely that needs a considerable hike. Is it not a form of tax evasion? In addition, the valuations office has the power to remove many homes from council lists altogether—thus taking them out of the figure—if they are deemed derelict and uninhabitable and therefore no longer eligible for council tax. So the figure is probably much higher, and some of the worst properties could lie empty for years, having been moved off the books. Whether these properties are counted in or out could account for the discrepancies in the figures we all look at when we are doing our homework, collected either by the ONS or through FoI requests. Perhaps it is time for this loophole to be closed. The danger here is that, the worse the property gets, the less pressure there is on the owners to do anything; in fact, they can be exempt indefinitely. There is no incentive at all to improve the property.

It is still the case that homes can remain exempt from council tax following the death of an owner until probate is granted. In my experience, some of the worst eyesore properties are in this category, as a result of deliberate inaction by whoever was responsible for securing probate. Coincidentally, I was door knocking in my patch on Friday night and a gentleman on Kingsfield Road said to me, “Don’t knock next door, the old lady’s died”. I said, “When was that?”. “Six years ago”. I inquired further, knowing that this is an interest, and it is a family dispute. They are not settling and they are not prepared to move things on. Is it time for a time limit for such situations, rather than allowing them to continue indefinitely?

Finally, does there not have to be an acceptance that housing is an essential part of the nation’s infrastructure and that maintaining it and improving it to an adequate standard in some cases requires central government investment—perhaps, in some parts of the country, significant investment? Otherwise, councils, particularly smaller district councils, at a time of severe budgetary pressures, will inevitably feel that tackling empty homes is a high-cost activity with low and uncertain rewards.

Housebuilders

Baroness Thornhill Excerpts

Thursday 11th January 2018 Lords Chamber

[Baroness Thornhill (LD)]

My Lords, I agree with much, although not all, of what has been said. It is clear to me from my experience as a former deputy chair of the LGA and the elected mayor of Watford that there is not only a housing crisis but, in particular, a massive shortage of social and affordable homes, which the current system is clearly failing to fix. In my four minutes I want to touch on one aspect of the planning process which is totally undermining local authorities’ ability to provide those much-needed homes and which has already been referred to by the noble Lord, Lord Best—the viability assessment.

In 2012, the National Planning Policy Framework, for the first time, made the viability of a development proposal a material planning consideration. That means that, if the projected profit on a scheme is less than 20%, developers can begin a process of haggling with planning officers to reduce the level of affordable housing and other community benefits, such as infrastructure, that councils can require through their much thought-out policies. This was meant to be used as a sensible exception to ensure that we did not end up with good housing sites going undeveloped because it was uneconomic to build on them, but instead it has become the rule.

In Watford, year on year since 2012, the number of social and affordable homes provided through Section 106 has declined by at least 50%. Our single example is backed up by more formal research by Shelter. It studied 11 authorities covering eight cities and found that new housing sites provided only 7% of affordable housing, when the authorities’ combined figures should have yielded 28%. The Government’s own figures show that 40,000 social homes were built for social rent in 2010, but in 2016-17 that number had reduced to a mere 5,500.

Local authorities have had to cope with the many and varied ways in which developers present their figures and use viability to evade the obligation to provide affordable homes. They have had to “tool up” to challenge the developers’ figures on almost every major application. It has become an expensive battle, involving the employment of viability experts on both sides. It is a grubby business that contributes to a general negativity in the relationship between planners and developers, and, perhaps more importantly, between the council and the public.

Councillors at planning committees feel frustrated. Their set policies to meet their local needs are being flouted purely because of this national policy. In Watford, we have tried to find ways to work with this process—for example, by designing clawback agreements should the viability improve over the life of the build—but this is whistling in the wind compared to the current need.

There is a growing consensus, evidenced by the recent letter to the Secretary of State from the LGA, the CPRE, the TCPA and others, that the system for assessing viability is weighted in favour of the applicant, leading to inflated land prices being paid at the expense of infrastructure, affordable housing and, as has also been mentioned, design quality. This undermines public confidence in the planning system.

The Government have recently closed their consultation Planning for the Right Homes in the Right Places, of which viability assessments formed a part. My and many other councils, along with the LGA and other esteemed bodies, have responded robustly. I hope that the Government will take on board those responses and recommendations, close this loophole and bring greater consistency and transparency to the process. It is becoming clear that this is a counterproductive and damaging measure, resulting in the loss of many thousands of homes for people stuck in temporary accommodation for far longer than I ever thought we would see on my watch, and with the only winners being landowners and housebuilders, who, as has already been pointed out, are reporting record profits.